Dutch Tax Blog

Dutch Tax Blog

Leasing your company car during holidays

General Dutch (Tax) NewsPosted by Mike de Gruijl Tue, October 04, 2016 13:52:54


A lease agreement between an employer and employee for the use of the company car during holidays does not prevent the addition on your salary for this car. This is what a Dutch court recently ruled.


Lease agreement holiday
In this case, it concerned a worker who had been given a company car to use during his holidays. The Tax Administration had provided that employee a "Declaration of non private kilometers" The employee then went in 2011, 2012 and 2013 with that same car on holiday. Before that he had signed a lease agreement with his employer. This agreement stated that the employee's rented the company car for a fee from the employer during the holiday season. The Tax authorities checked the logbook and claimed additional assessments. They believe that the 500 private kilometergrens was exceeded by the driven holidays kilometers. But they did settled the lease payments with the additional assessments.


Holiday Kilometers are private kilometers

The employee did not agree with this assessment and went to court. The judge stated that an addition to the company car can only be omitted if an employee uses a car for less than 500 kilometers for private purposes. The mileage of the employee on a holiday, according to the court, are to be regarded as private. That the employer and employee had signed a lease agreement makes no different thus the judgement of the court. So the Tax authorities had rightly imposed the additional tax assessments and taking into account the personal contribution.


More Dutch tax information can be found at Tax & Service Solutions



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